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Govt calls for evidence of barriers in renewable sector - 06/07/2012

The government is calling for an investigation into a reported decline in renewable power purchasing by energy suppliers.

Some independent renewable generators have claimed there are barriers to market access, which is leading to a decline in investment.

It was noted by the Department of Energy and Climate Change that before generators can raise money to build their project they must secure long-term contracts that will guarantee someone will purchase the power generated.

However, there is concern a decline in these Power Purchase Agreements could lead to a fall in interest in green energy.

The government needs to attract £110 billion of investment in low-carbon forms of power generation in the next ten years in order to meet climate targets and reduce consumer bills.

Responses to the call for evidence will run from July 5th to August 16th and will help to refine proposals set out in the draft Energy Bill, such as Contracts for Difference, Investment Instruments and a Capacity Market.

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